Rebranding strategy Essay Paper

Introduction

Rebranding is a routine business activity conducted in response to unfavorable business results caused by the brand being out-of-touch, out-of-date or weak. In having weak brand, the company experiences poor market awareness, expansion limitations, diminished repeat business, and minimal brand equity. The intention of rebranding is to reposition a company, product or service in the marketplace. Through rebranding, the company is able to its current and potential customers why they should spend money on a product or service. Although necessary, rebranding can be a challenging experience, especially in the face of awareness that change in the business environment is potentially risky and costly (Westwood, 2013). The present paper proposes a rebranding strategy for the Detroit-based General Motors (GM).

Discussion

General Motors (GM) announced that it would close 7 factories and fire more than 14,000 personnel in the USA by the end of 2019. This was in response to weakening sales in the country and increased prices of raw material. The move is anticipated to reduce costs by $6 billion and help the company to remain profitable. These moves are in the wake of the company quitting some global markets such as Europe and the United Kingdom. The company’s major business activities are the design, manufacture, marketing and distribution of vehicles and vehicle parts (Marchant, 2019). Despite the moves to cut costs, the reality is that the GM brand is weakening in the USA and this is causing unfavorable business results.  Rebranding strategy Essay Paper

1. A new name

‘Frontier Autos’ should be adopted as the new name for GM. The new name would reflect the company’s rich history as an automaker, and intention to present new futuristic vehicle designs and feature that cater to the existing market needs (Baines & Fill, 2014)

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2. Changes in packaging

The packaging for Frontier Autos would integrate old and new vehicle concepts, showing how the company has progressed since it produced its first care up to the latest vehicle concepts. In addition, progressive color progression will be used with purple used for the old and red used for the latest concepts with blue between the two. The use of color progression in the packaging is an indication of advancement from novices to experts who can be trusted to always offer the best (Baines & Fill, 2014).

3. The price point

Pricing for Frontier Auto products will be competitively priced based on three factors. Firstly, desired profit margin that is expected to meet the expectations. A smaller profit margin would be expected as the brand is weak, with the margin increasing as the brand grows stronger and gains a reputation for value, safety, and quality. Secondly, market prices of competing products with a focus on setting prices that are comparable to competing products with similar features. For instance, pricing min SUVs within the same range as those produced by Toyota brand. Thirdly, customer expectations and how they would respond since the market is willing to pay for value and is sensitive to price changes. This factor takes note of the price elasticity (Baines & Fill, 2014).

4. Product position

The target market covers a wide range of demographics since the company produces vehicles for a wide range of locomotion needs. The target market reveals that customers are concerned about movement but are struggling with quality, value and functionality concerns. The market wants a care that reliably takes them from point A to point B. The company’s vehicles address this need by providing a machine that moves. The company products will be positioned as vehicles that offer value, quality, comfort and functionality. The positioning statement is: “for customers that want functionality, value and comfort, our range of vehicles are a solution that addresses this need” (Westwood, 2013).

5. Advertising strategy

The advertising strategy adopted for the company’s products will apply outbound and inbound advertising approaches. Outbound advertising approaches will make use of lead contacts to inform potential customers about new products through mass emails, post cards and cold calls with the intention of generating sales. Inbound advertising approaches involves aligning the product features with the market interest through the use of media posts with the product descriptions optimized in public search engines. In addition, the company will use behavioral advertisement strategies to include collectivism, evocation, reframing, modeling, and commitment (Westwood, 2013).

6. A distribution method

The company products will be distributed through branded dealerships that have the capacity for customer care and vehicle maintenance service. This is intended to build a close emotional connection between the company and the market. Besides that, the method helps the company is managing the customers’ experiences during the whole vehicle ownership cycle, especially when the customers are looking to acquire new vehicles. At this point, the branded dealership acts as a key point of contact that can influence purchase decisions (Westwood, 2013).

7. Improvements in design or quality

Improvements in vehicle design and quality will be based on industry trends and market expectations. The company will seek to be an innovation leader, taking calculated risks to offer unique products that do not compromise on design and quality. Overall, all improvements will be based on customer satisfaction measures that are adapted to new environments and in response to changed conditions (Westwood, 2013).

Conclusion

One must accept that it is not uncommon for successful brands to face slumps in business results, thereby necessitating rebranding. In addition, one must acknowledge that rebranding is an opportunity to offer a brand as a new product that garners the market’s attention. An example of rebranding is seen in GM, an auto company that has experienced a drop in US sales forcing the company to cut costs. To facilitate business improvement efforts, a rebranding strategy has been discussed for GM to include new name, packaging, pricing, positioning, advertisement, distribution and product improvements.

References

Baines, P. & Fill, C. (2014). Marketing (3^rd ed.). Oxford: Oxford University Press.

Marchant, N. (2019). 15 companies facing a make-or-break 2019. Retrieved from https://www.msn.com/en-us/money/companies/15-companies-facing-a-make-or-break-2019/ss-BBRhlWD#image=1

Westwood, J. (2013). How to write a marketing plan? London: Kogan Page Publishers.  Rebranding strategy Essay Paper